Ethereum (ETH) seems to be recovering after the recent market crash. Several metrics suggest that the worst is over and ETH is poised for a strong comeback.
The Bottom is In?
On-chain data from Glassnode shows that Ethereum’s market value to realized value (MVRV) has reached its lowest point. This suggests that the price is unlikely to drop much further and could be headed for a new high.
Ethereum’s price dipped to around $2,200 after the August 5th crash, which is close to the MVRV pricing band, further supporting the idea that the bottom is in.
Investors are Accumulating
Another positive sign is that Ethereum investors are holding onto their assets, rather than selling. The percentage of ETH held on exchanges has dropped significantly, which means there’s less selling pressure and a greater potential for a price rally.
Could ETH Hit $6,759?
Glassnode data suggests that Ethereum could rise above $5,000 and potentially reach $6,759, which is the highest MVRV pricing level currently.
While some analysts believe ETH could even reach $10,000, $6,759 could mark the peak for this bull run.
Other Indicators Point to a Rally
Cryptoquant, another on-chain analytics platform, highlights two metrics that support an upcoming price rally for ETH:
- Taker Buy-Sell Ratio: This metric, which calculates the ratio of buyers to sellers, is showing positive signs, indicating that buyers are gaining strength and suppressing selling pressure.
- Open Interest (OI): After dropping to $7 billion following the market crash, Ethereum’s OI is rising again. This indicates that leveraged players are returning to the market, which can significantly impact ETH’s price.
Overall, while Ethereum is currently trading at around $2,590, the various metrics suggest that the crypto is in a good position for a strong rebound. The potential for a new all-time high is certainly on the table.
